FULL YEAR RESULTS

Year ended 30 September 2022

6th December 2022

November 2020

Agenda

  • Overview
  • Financial Results
  • Business Update
  • Environmental, Social & Governance

Charlie Peppiatt - CEO

Chris Jewell - CFO

  • Summary & Outlook

PRELIMINARY RESULTS PRESENTATION - FY 2022 PAGE 2

Key Points

  • Record order book of £147.7m up 51% reflecting strong end market demand (FY2021: £97.8m)
  • Revenue of £124.8m unchanged on prior year (FY2021: £124.1m)
  • Growth in both Industrial and Life Sciences offset by decline in Aerospace and Defence
  • Adjusted profit before tax declined 35.4% to £8.1m (FY2021: £12.6m)
  • Investment to increase capacity but challenges with recruitment, operations and supply chain constrained output
  • Net debt increased to £19.1m (FY2021: £9.2m) reflecting inventory investment to alleviate supply chain shortages
  • Proposed final dividend of 7.9 pence per share, giving a total of 12.6 pence per share (FY2021: 12.2p)
  • Review of the Group's strategy underway

"I will be focused on ensuring we resolve the operational constraints and address investment priorities that have impacted the business to deliver the strong demand we see from our customers."

PRELIMINARY RESULTS PRESENTATION - FY 2022 PAGE 3

Initial Observations of the new CEO

  • Dedicated workforce with deep technical skills across the business
  • Broad blue-chip customer base across all end markets
  • G&H products are recognised for their superior technical performance and quality
  • Operational delivery over recent times has not met required standards
  • Facilities well invested, new product development requires acceleration
  • Elements of existing strategy valid but execution and implementation stalled

PRELIMINARY RESULTS PRESENTATION - FY 2022 PAGE 4

Financial Headlines - Summary Income Statement

Year Ended 30 September

2022

2021

% Change

£m

£m

Revenue

124.8

124.1

0.6%

Gross profit

39.1

41.3

(5.5)%

Gross margin %

31.3%

33.3%

(200)bps

Adjusted operating profit

8.9

13.3

(33.6)%

Adjusted operating profit

7.1%

10.8%

(370)bps

margin

Adjusted profit before tax

8.1

12.6

(35.4)%

Adjusted basic earnings per

27.2p

41.0p

(33.7)%

share (p.p.s)

Non underlying items

10.4

7.9

31.2%

"Sustained investment is being made to satisfy record levels of demand from our customers."

  • Revenue grew by 0.6%; excluding fx down 3.7%
  • Further growth in our industrial laser and semiconductor revenue
  • Medical lasers market is strong; A&D revenue declined as programmes ended
  • Gross margin declined to 31.3%; lower volumes and continued investment to add productive capacity
  • Cash investment of £9.3m in R&D (2021: £7.9m)
  • Adjusted effective tax rate was 16.3% (2021: 18.8%)
  • Non underlying items charge of £10.4m, cash of £0.5m. Included £6.7m impairment charge against goodwill and other intangible assets, driven by increase in the Group's cost of capital
  • Reported loss before tax for the year of £2.3m

PRELIMINARY RESULTS PRESENTATION - FY 2022 PAGE 5

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Gooch & Housego plc published this content on 06 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2022 09:51:05 UTC.